Property Knowledge Centre → What Is the Risk in an Agent Underquoting or Overquoting to Win My Listing?
What Is the Risk in an Agent Underquoting or Overquoting to Win My Listing?
What is the risk in an agent underquoting or overquoting to win my listing? The biggest risk is that the campaign begins from a position designed to secure your business rather than one based on a realistic assessment of the property, the evidence and the market.
An agent may present an overly optimistic price because they believe a higher figure will make their proposal more attractive. Equally, an agent may pitch a lower expectation if it makes the property appear easier to sell or helps support a particular sales strategy. Neither approach should replace a properly reasoned appraisal.
The seller should ask one fundamental question: what evidence supports the figure? A credible price opinion should be explained using relevant comparable sales, the property’s individual characteristics, current competition, buyer demand and prevailing market conditions.
The problem with an unrealistic starting position often becomes apparent once the campaign begins. If buyers repeatedly respond below the expectations discussed at the appraisal, the seller can find themselves being asked to adjust their expectations after valuable campaign time has already passed.
That can have a real cost. The early stages of a campaign are important because the property is new to the market and prospective buyers are forming their first impression of its position and value. If the strategy has to be repeatedly changed, buyers may begin questioning why the property has not sold or whether the seller’s expectations are realistic.
An unnecessarily low expectation can create different problems. A seller may be encouraged to accept an outcome too quickly without first establishing whether broader exposure, additional competition or a different method of sale could have produced a stronger result.
The price opinion should also make sense alongside the proposed strategy. If an agent is forecasting a particularly strong result, ask how the campaign is designed to create the buyer competition necessary to achieve it. If they are recommending a more conservative position, ask why and what market evidence supports that view.
Sellers should also understand what happens if the original expectations are not supported by the market. How will buyer feedback be assessed? When will the strategy be reviewed? What changes might be recommended, and what financial or contractual commitments have already been made to the campaign?
This is why choosing an agent should involve more than comparing the numbers presented at an appraisal. Look at the agent’s reasoning, relevant track record, method of sale, marketing strategy, communication and ability to explain how they intend to respond as the campaign develops.
Related Questions
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For an evidence-based assessment of your property’s likely market position and a selling strategy built around current buyer demand rather than simply winning the listing, request a professional property appraisal with Clements International.